Applied Finance Capital Management LLC Lowers Stake in International Business Machines Corporation $IBM

Key Points

• Applied Finance Capital Management LLC reduced its stake in IBM by 16.6%, now holding 131,337 shares valued at approximately $38.71 million.
• IBM's stock price was $275.93 with a market capitalization of $256.45 billion, while it reported earnings of $2.80 per share, exceeding analysts' expectations.
• The company announced a quarterly dividend of $1.68 per share, yielding 2.4%, although its payout ratio stands at a high 109.09%.

Applied Finance Capital Management LLC trimmed its holdings in shares of International Business Machines Corporation (NYSE:IBM - Free Report) by 16.6% during the 2nd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 131,337 shares of the technology company's stock after selling 26,131 shares during the period. International Business Machines makes up about 2.6% of Applied Finance Capital Management LLC's investment portfolio, making the stock its 7th largest holding. Applied Finance Capital Management LLC's holdings in International Business Machines were worth $38,711,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors have also recently modified their holdings of IBM. Vanguard Group Inc. raised its position in International Business Machines by 1.4% in the 1st quarter. Vanguard Group Inc. now owns 93,137,767 shares of the technology company's stock worth $23,159,637,000 after buying an additional 1,298,515 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of International Business Machines by 6.5% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 8,636,725 shares of the technology company's stock worth $2,147,608,000 after acquiring an additional 524,633 shares during the period. Ameriprise Financial Inc. raised its holdings in shares of International Business Machines by 1.0% during the first quarter. Ameriprise Financial Inc. now owns 5,516,240 shares of the technology company's stock valued at $1,371,812,000 after purchasing an additional 52,317 shares during the last quarter. Goldman Sachs Group Inc. lifted its position in International Business Machines by 20.8% during the first quarter. Goldman Sachs Group Inc. now owns 5,157,846 shares of the technology company's stock valued at $1,282,550,000 after purchasing an additional 889,008 shares during the period. Finally, Dimensional Fund Advisors LP boosted its holdings in International Business Machines by 0.5% in the first quarter. Dimensional Fund Advisors LP now owns 5,108,455 shares of the technology company's stock worth $1,270,022,000 after purchasing an additional 24,790 shares during the last quarter. 58.96% of the stock is owned by institutional investors.

International Business Machines Stock Down 1.7%

NYSE IBM opened at $275.93 on Friday. International Business Machines Corporation has a 52 week low of $203.51 and a 52 week high of $301.04. The company has a quick ratio of 0.87, a current ratio of 0.91 and a debt-to-equity ratio of 2.00. The company has a market capitalization of $256.45 billion, a P/E ratio of 44.79, a price-to-earnings-growth ratio of 4.32 and a beta of 0.73. The stock's 50-day moving average price is $260.29 and its 200-day moving average price is $261.44.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, July 23rd. The technology company reported $2.80 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.65 by $0.15. International Business Machines had a net margin of 9.11% and a return on equity of 37.62%. The company had revenue of $16.98 billion during the quarter, compared to analyst estimates of $16.58 billion. During the same period in the prior year, the firm posted $2.43 EPS. The firm's quarterly revenue was up 7.7% compared to the same quarter last year. International Business Machines has set its FY 2025 guidance at EPS. On average, equities research analysts predict that International Business Machines Corporation will post 10.78 earnings per share for the current year.

International Business Machines Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 10th. Investors of record on Friday, August 8th were paid a dividend of $1.68 per share. The ex-dividend date was Friday, August 8th. This represents a $6.72 dividend on an annualized basis and a dividend yield of 2.4%. International Business Machines's payout ratio is 109.09%.

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on IBM. The Goldman Sachs Group boosted their target price on shares of International Business Machines from $270.00 to $310.00 and gave the company a "buy" rating in a research note on Wednesday, July 2nd. Morgan Stanley lifted their price objective on International Business Machines from $253.00 to $256.00 and gave the stock an "equal weight" rating in a report on Wednesday. Wedbush increased their target price on International Business Machines from $300.00 to $325.00 and gave the company an "outperform" rating in a report on Friday, June 20th. Bank of America cut their price target on International Business Machines from $320.00 to $310.00 and set a "buy" rating for the company in a research note on Thursday, July 24th. Finally, Sanford C. Bernstein started coverage on shares of International Business Machines in a research report on Monday, September 15th. They set a "market perform" rating and a $280.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, eight have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Hold" and a consensus price target of $286.38.

International Business Machines Profile

International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate.

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